As far as I understand it, there isn't a way to batch replace one variable for another, but if you're wanting to replace an object with another object:
Select all the events and actions with that object in it, right click on the selected code and select "Replace object".
You are offered the choice of which object to replace: Pick Character1 and then on the next window pick Character2 to swap.
This will only work if both objects are the same type and all the behaviours and variables for Character1 that are referenced in the selected code are also present on Character2.